The Oak Associates Large Cap Growth Strategy seeks to maximize returns over a full market cycle by investing in the firm’s best ideas, remaining fully invested and making decisions with a long-term mindset.
The Oak Associates Large Cap Growth Strategy typically holds 20 to 25 stocks and a limited number of sectors. Oak’s investment team manages this portfolio collaboratively with a top-down and bottom-up investment approach:
Our top-down analysis comprises about 60% of the process and includes consideration of inflation, wage pressures, leading economic indicators and global short-term rates. Our macroeconomic analysis leads us to the most attractive sectors. We evaluate sectors by considering relative valuation, stage in the economic cycle and capacity within the sector. Other inputs to the top-down analysis include market sentiment indicators such as investor surveys, valuation spreads, stock correlations and fund flows.
The bottom-up process then applies empirically based qualitative and quantitative criteria to identify the buy candidate. A typical Oak holding has attractive valuation, high free cash flow yield, high earnings quality and a sustainable competitive advantage.
The Large Cap Growth strategy is also available as a no-load mutual fund, White Oak Select Growth (WOGSX).
Investments are made with a long-term orientation, generally involving purchases of securities held for 3 to 5 years. This results in relatively low portfolio turnover. Our investment style tends to focus on identifying opportunities the market isn’t seeing or is underestimating, thus seeking out-of-favor situations at attractive prices.
Email the Relationship Management Team or call 330-668-1234